Will The Income Statement Necessarily Report A Net Income Explain

What was the amount of net sales.

Will the income statement necessarily report a net income explain. B what was the amount of gross profit. For the fiscal year sales were 8 300 000 sales discounts were 100 000 sales returns and allowances were 45 000 and the cost of merchandise sold was 5 000 000. A what was the amount of net sales. The other major financial statements are the balance sheet statement of cash flows statement of comprehensive income and the statement of stockholders equity the income statement is sometimes referred to as the profit and loss statement p l statement of operations statement of.

On the other hand if operating expenses exceed gross profit there will be a net loss. If operating expenses are less than gross profit there will be a net income. Net income net income net income is a key line item not only in the income statement but in all three core financial statements. An income statement is a company s financial statement that indicates how the revenue money received from the sale of products and services before expenses are taken out also known as the top line is transformed into the net income the result after all revenues and expenses have been accounted for also known as net profit or the bottom line.

The income statement summarizes a company s revenues and expenses over a period either quarterly or annually. 24 7 644 000 31 850 000 c. Income statement should not necessarily report a net income as gross profit is mere the difference between the sell price and the cost of goods sold where as various other operating and non operating income expenses are incurred during a financial year which may result in net loss to the concern. Balance sheet income statement statement of owner s equity and statement.

Will the income statement necessarily report a net income. 7 644 000 31 850 000 24 206 000 b. C will the income statement necessarily report a net income. Net income is often viewed as the single most important number which describes a company s performance over time.

The income statement comes in two forms multi step and single step. Compare the gross profit percentage gross profit divided by sales 3. Will the income statement necessarily report a net income. Net income also called net earnings or profit or loss is reported at the bottom of the income statement and for this reason may also be referred to as the bottom line.

While it is arrived at through the income statement the net profit is also used in both the balance sheet and the cash flow statement. Explain for the fiscal year sales were 5 280 000 sales discounts were 100 000 sales returns and allowances were 75 000 and the cost of merchandise sold was 3 000 000. The income statement is one of the main four financial statements that are issued by companies.